Rapid City sales tax collections posted strong gains early in 2026, coming in well above budget projections for the first two months of the year.
Finance Director Daniel Ainslie said February receipts point to broad growth across most sectors, with both general and tourism-related taxes showing solid increases.
General two-percent sales tax collections rose 11.4% in February compared to the same month last year. Overall, sales tax revenues are running 7.9% above the city’s 2026 budget forecast. Tourism sales tax collections for February increased 6.2% year over year.
Total sales tax collections for January and February reached $13.3 million, nearly $1 million higher than the $12.33 million collected during the same period in 2025. Tourism-related sales tax receipts totaled $854,244 for the first two months of 2026, up from $793,226 a year earlier.
City officials also reported solid gains across sales tax categories supporting the General Fund, Capital Improvement Projects Fund and Vision Fund.
The February sales tax report is scheduled to be presented at todays Rapid City Legal and Finance Committee meeting.
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